How to get a mortgage and types of mortgages

Whether you are living in France or looking to borrow as a non-resident, we ask the experts for their top tips for anyone thinking about getting a French mortgage

You have decided you would like to buy a property in France. Maybe you have moved here and are starting a new French adventure, or perhaps you are purchasing a second home for holidays or rental opportunities. 

Whatever the reason, you may need a little help to finance your purchase. Or perhaps it makes financial sense to take out a mortgage to avoid unfavourable exchange rates. 

This is where French mortgages come in. 

Many buyers are pleasantly surprised at the low rates and long terms of mortgages in France, where deals range from six to 25 years, and fixed-rate, 20-year mortgages are the norm. 

The current average rate for a 20-year, fixed-term mortgage is 3.15% (Jan 2025), down from over 4% a year ago.

Can I get a mortgage in France?

Both residents and non-residents can apply for a mortgage in France. Whether or not your application is successful will depend on your personal profile. 

“There are definitely lending options available to Britons and Americans buying properties in France. Typically the borrowing is cheap, certainly cheaper than in the US or the UK,” says Amaury de Monclin, managing director and founder of Bluesky Finance, a mortgage broker aimed at international clients. 

Different banks have different criteria, but major considerations include:

• Your age - some lenders have restrictions on older borrowers and will not lend to over 65s. 

• Your income and employment status - risk averse French banks are looking for stability and a regular, healthy income is preferred.

• The property and its location - banks are more likely to lend for properties in prime locations where reselling would be easy.

Mortgage rates 

Mortgage rates in France fell steadily throughout 2024 and are expected to drop further in 2025. 

The rate you are offered will depend on several factors, such as whether you are a resident or non-resident, the amount you want to borrow, your income, and the type of property you are buying.

What kind of mortgages are there?

Fixed-rate

“Most mortgage plans are long-term, fixed rate mortgages,” says Mr de Monclin. This means your interest rate is fixed for a set number of years and will not change, unless you renegotiate. 

Interest only

Less common in France, where lenders consider them a riskier option, interest-only mortgages mean the borrower will only pay back the interest, rather than the loan amount. 

They will then pay the lump-sum loan amount at the end of the term, or pay off portions at less regular intervals. 

Variable-rate 

Much less common in France, variable rate mortgages fluctuate according to the Euribor rate, affecting your monthly payments or the length of your mortgage. One advantage of a variable rate is that there are usually no penalties for early repayment. 

Capped-rate

Similar to a variable rate, but including a capped upper limit, offering more security, these rates are incredibly popular with non-resident buyers. “It’s worth considering in the current cycle when rates are coming down,” says Mr...

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